When the market is the currency in circulation to reduce the people's money derived from reduced purchasing power decline, affecting the prices down, resulting in deflation. The long-term monetary tightening would inhibit investment and production, leading to rising unemployment and economic recession.
When in the market circulates the currency reduction, people's money income reduction, the purchasing power drops, affects falling of the price, creates the deflation.The long-term currency reduces can suppress invests and produces, causes the unemployment rate ascension and the economic recession.
